Big Banks Keep Watering Down Global Reserve Rules

New Basel III regulations were supposed to force global banks to hold enough cash and highly liquid assets to prevent the kind of financial crisis that spun out in 2008. But it has not worked out that way. The banks, by pressuring officials negotiating the standards on behalf of their countries, have watered down the rules so much they offer little if any new protection, says Wharton finance professor Richard J. Herring, in this Knowledge@Wharton interview.